HOW FORD WILL SAVE MERCURY

When Alan Mulally came to the Ford Motor Company two years ago he finally forced the company to face reality. It wasn't going to go anywhere, he told his executive team, unless it put all its resources into resuscitating the Ford brand on a global basis.

So Jaguar and Land Rover were given the heave-ho, and Volvo was put "under review." The decision was made to let Mercury slowly die, and Lincoln's turn-around was put on the back burner until the Ford brand revived.

Automotive News sat down with Derrick Kuzak, Lincoln's product development chief, to discuss what lies ahead for Ford's erstwhile luxury marque, and Kuzak was quoted as saying, "We do think that there is room for a smaller car in the Lincoln brand," but he was unable to provide any hard details on what - if anything - is planned.

Click above for high-res gallery of 2010 Mercury Milan spy shots

Mercury, after nearly being introduced to oblivion, was rescued from the void because Ford needs a brand that could be devoted to small cars. The Ford brand, still fighting off oblivion itself, has recently been devoted to fresh, new designs that provide consumers the flair and features they've been looking for.

What's a Mercury? That's a question that's been on the lips of senior execs at FoMoCo for some time. Positioned between Ford and Lincoln, the badge-engineered brand has been lacking defined products for over a decade, but according to the Derrick Kuzak, Ford's global product chief, that's going to change.

Mercury will be repositioned as an entry-level premium brand that will still slot in below Lincoln, but will be made up entirely of small vehicles and crossovers. Lincoln dealers, on the other hand, will be stocking mid-size sedans and larger vehicles, while Mercury will focus on smaller, more fuel-efficient products.

Mercury has been languishing over the last several years with badged-engineered products barely distinguishable from their Ford brethren. As the market shifts towards smaller cars with higher fuel efficiency, there may be a golden opportunity for the Mercury brand to actually prove its worth as Ford's outlet for European-designed vehicles for the American market. In a move akin to what General Motors has done with Saturn, importing Opels to the U.S. in an attempt to revive the marque, Ford could bring its highly-desirable Euro-only models to the States badged as Mercurys.

There's further proof that Ford's planetary division could soon wave goodbye, according to Automotive News. While we've already reported on the apparent lack of supplier deals for the ailing upmarket brand from Ford, some further dissection reveals just how close Mercury may be to the brink of extinction. For instance, no Mercury vehicle currently exists which isn't a mild rebadge of a Ford product. While we have had hints of new models wearing the Blue Oval badge, not a peep has been provided regarding future Mercury products.